IL Gov. J.B. Pritzker and Gotion High-Tech Chairman Li Zhen at the Sept. 8 announcement of The Illinois – Gotion deal
Some politicians are taking notice of the absurdity of subsidizing a Chinese technology company, Gotion. The electric vehicle battery maker is linked to the Chinese Communist Party (CCP) and it recently inked a deal with the State of Illinois to build a $2 billion plant in Illinois.
However, the insane size of the subsidies being granted remains to be recognized.
On Wednesday, two members of the House Select Committee on the Chinese Communist Party wrote to Treasury Secretary Janet Yellen, imploring her and Congress to take immediate action to stop the CCP from exploiting U.S. taxpayer dollars.
The letter from committee Chairman Mike Gallagher (R-WI) and Rep. John Moolenaar (R-MI) specifically addressed a very similar Gotion battery production project in Michigan, and the same issues apply to the Illinois project.
The letter documents connections between Gotion and the CCP:
Gotion High-Tech Co. is a PRC company that has direct ties to the CCP and state-owned financial institutions. Gotion has been an active participant in the PRC-based version of the “Thousands Talent Program,” a program the FBI itself says encourages theft of trade secrets and economic espionage. Gotion has established multiple “Communist Party Units” within its operations and has publicly sought PRC provincial government support for its desire to expand its operations overseas. Even when courting major Western investment, Gotion has been adamant about retaining PRC-based control, including requiring that Volkswagen give up part of its voting rights, despite Volkswagen acquiring over 25 percent of the company. [Footnotes omitted.]
“It is perplexing,” says the letter, that the U.S. government would perpetuate China’s domination of key technology “by actively supporting CCP-backed companies expanding their foothold in the U.S. market, especially in a crucial sector such as lithium-ion battery manufacturing.”
Perplexing, indeed.
Read more here.
Related: “Federal taxpayers will fund billions more than actual cost of Illinois battery plant to be owned by Chinese company with alleged CCP ties,” “Hefty Illinois tax incentive package helps lure Chinese EV battery plant”
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